Which of the Following Describes a Situation in Which Firms

question 88

Multiple Choice

Which of the following describes a situation in which firms acquire resources at a low cost,laying the foundation for a competitive advantage later?

• A) better expectations of future resource value
• B) path dependence limiting current decisions
• C) causal ambiguity
• D) social complexity

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Definitions:

Policy

In insurance law, a contract for insurance coverage. The policy spells out the precise terms and conditions as to what will and will not be covered under the contract.

Potential Loss

The possibility of experiencing a negative outcome, often calculated in terms of financial impact.

Risk

A prediction concerning potential loss based on known and unknown factors.

Hazard

A potential source of harm or adverse health effect on a person or persons.